Elk Grove Village, IL asked in Contracts, Real Estate Law and Landlord - Tenant for Illinois

Q: Commercial lease that ends January 2023. Jan 2021 the personal guarantees go away. What happens if we close Feb 2021?

Because of the virus,we want to close our business after the personal guarantees go away. They go away in jan 2021...but our lease doesnt end until Jan 2023....can the land lord take us to court and demand we pay for the remainder of the lease? How lenient are the courts in these kinds of situations? If we are taken to court should we hire a lawyer,or is it not necessary?

2 Lawyer Answers
Robert Shipley
Robert Shipley
PREMIUM
Answered
  • Chicago, IL
  • Licensed in Illinois

A: The lease will have to be reviewed to determine what liability there may be beyond the personal guaranty as well as the potential for an early termination. There are many options to discuss with the landlord including temporary rent abatement or modification, early buyout, allowing the landlord to advertise the property as being available to lease. It would be best if you consulted with an attorney experienced in the drafting, review and negotiation of commercial leases to discuss your options.

James G. Ahlberg
James G. Ahlberg
Answered
  • Landlord Tenant Lawyer
  • Rochelle, IL
  • Licensed in Illinois

A: I agree with Mr. Shipley's answer, though I would add you should hire an attorney if you're taken to court.

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